How to Buy Bitcoins
Cryptocurrency has never been so accessible and easy to buy than it has become now.
The most widespread and looked for cryptocurrency is a Bitcoin. Bitcoins are a digital
currency that lets people send or receive funds via the internet.
Bitcoin is now widely accepted across the globe, and its applications are ever-improving
and increasing. When you buy bitcoins, you can use them both as a currency as well as
an investment.
Few quick tips on how to buy bitcoins and the necessary things to keep in mind:
● Signing-up for a Bitcoin wallet and password protecting it for safety
● Selecting a payment platform as per your choice, like traditional payment
methods or even debit or credit cards
● Bitcoins have a highly volatile pricing
● It is sometimes uncertain in terms of legality and taxation
● Many banks oppose cryptocurrencies
There are multiple options or ways in which you can buy a bitcoin using cash applications,
online, at ATMs, or even from money transfer applications like PayPal.
Now let’s dig a little deeper into ways how you can buy bitcoins:
1. How to find a good and reliable Bitcoin wallet
Finding a safe and reliable Bitcoin wallet is an essential task before you decide to buy
this cryptocurrency. Various digital wallets let you store bitcoins until you sell them or
exchange them with any other currency.
Bitcoins are maintained by using public and private keys. These keys are used as the
digital signature of the owner and password to trade them.
You can choose a wallet linked with an exchange platform or one which is not depending
on your needs. The easy-to-use online and mobile wallets prove extremely useful to
access your bitcoins quickly. But then again, in these wallets, you store the information
in a third party cloud-based system.
Here are a few wallets that are recommended based on customer reviews and
feedbacks.
● Coinbase – It is one of the most popular platforms for buying and selling
Bitcoins. It has an inbuilt exchange platform that allows users to trade bitcoins.
Knowing about the Coinbase platform and how to buy bitcoins in
Coinbase is but required before proceeding.
● Mycelium – Mycelium is a highly successful mobile wallet that uses an open
protocol and focusses on the security of the bitcoins to the utmost.
● Exodus – It is an off-line application which also supports several
cryptocurrencies apart from Bitcoin.
2. Personal Documents
As a part of the anti-money laundering policy, the US Securities and Exchange
Commission makes it mandatory for users to verify their identities before registering
with digital wallets.
However, the request for personal documents mostly depends on the exchange platform
that you are using. It can be your driving license, utility bills, birth certificates, or even
passport. It is a part of the know-your-customer procedure of the trading platforms.
Often, people happen to look for how to buy bitcoins anonymously or how to buy
bitcoins without an ID. This process is complicated due to the seriousness of
cryptocurrencies and their effect on both the user and the market. It is discouraged as a
part of the security process of the platforms.
3. Strong and secure internet connection
It is imperative to have a secure and robust internet connection when you decide to buy
bitcoins online. Accessing your bitcoin wallet or trading application on a public Wi-Fi
network or an insecure connection can make you vulnerable to hacking and other illegal
activities.
4. How to choose the right Bitcoin trader or exchange platform
There are multiple ways to buy bitcoins, but it is but obvious to find the most reliable
and secure platform to do so. The platforms to purchase bitcoins are much like the stock
market, where traders reach out to buy or sell the stock.
The online markets or exchanges make it extremely easy to trade bitcoins. You can
directly exchange traditional currencies for bitcoins with the help of these exchange
platforms.
In case you are looking for answers to how to buy bitcoins for cash or how to buy
bitcoins at ATMs, it is essential to select a secure and safe place for carrying out
transactions like these in person.
A few of the well-reviewed markets are Gemini, CEX.IO, and Coinnama.
5. How to select a payment method
Once you have successfully signed up for a cryptocurrency exchange platform, you can
now choose a feasible payment method.
The major wallet providers allow you to use any traditional payment method for buying
bitcoins. It can be done via debit or credit cards or even bank transfers.
For example, most people tend to use debit or credit cards for such transactions. For
doing this, you will need to go through an online identification process while also these
options have comparatively higher fees than the other methods. In the case of bank
transfers, however, the transaction fees are relatively low.
Buying for bitcoins by cash, or even through ATMs are two of the most common
alternative methods to stock up bitcoins. But there are a few advantages and
disadvantages of using each of the methods. So you can make an educated decision
before opting for any.
Alternative Options for buying Bitcoins:
● How to buy bitcoins for cash
Dealing with bitcoins in cash is one of the fastest ways and reserved options to
choose from. Most of the time, it is difficult to trace it back to the buyer.
Usually, while buying bitcoins for cash, there is no requirement to share any
personal information. It is swift as you just have to share your wallet details, pass
the cash to the seller, and within a couple of hours, the bitcoins are credited to
your account. This method is also not very secure and safe for large transactions.
It can also have higher rates than the market price.
But, a few cash exchanges that are secure and have good feedback from
customers are BitQuick for the US only, Wall of Coins for the US, Canada, and
Germany, and LocalBitcoins, which can be used globally.
● How to buy bitcoins at ATM
Another way to buy Bitcoins fast and easy is through the Bitcoin ATMs. In these
ATMs, you just require to deposit the cash in the machine and buy the bitcoin.
● How to buy bitcoins from PayPal
Most people tend to have accounts synced in PayPal due to the ease of
transferring funds all across the globe. But buying bitcoins from PayPal can be
pretty expensive.
The rates of the bitcoins in PayPal are over 12 percent higher than the market
prices. But even then, a few customers find it reliable to use and buy bitcoins
from this application.
In case of any dispute, you can always reach out to the toll-free number for
PayPal customer services.
● Peer-to-peer exchange services
Another answer to “how to buy bitcoins online” is the P2P services. Offering a
direct contact between the buyer and seller, the peer-to-peer (P2P) exchange
service makes the process of buying and selling much more accessible.
Now that you are all set to create an account keep in mind the quick tips before choosing
the right one for yourself.
Bitcoins can sometimes be overwhelming. It keeps fluctuating from time to time,
making it essential for you to keep a regular check on it and not store it for the
long-term.
You can do anything with a bitcoin that you can do with any otherwise traditional
currency. Be it transferring it overseas or donating it for a good cause, or even
converting it to another cryptocurrency, Bitcoins can do it all.
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